STX · 10-K · 2026A · Full report

Capital Expenditure Outlook

Seagate Technology Holdings plc · 2026-08-04 · Importance 52 · Surprise 42 · In source text

Seagate had $465 million of unconditional capital expenditure commitments as of July 3, 2026, primarily for equipment, with approximately $375 million payable within one year. The company expects fiscal year 2027 capital expenditures to exceed fiscal year 2026 levels to support the volume ramp of hard drives using heat-assisted magnetic recording (HAMR) technology. Despite the expected increase, fiscal year 2027 capital expenditures are expected to remain within Seagate’s target range of 4% to 6% of revenue.

Key facts

Impact estimates

metricdirectionstageexpectedbasis
cashnegativeprobableFor fiscal year 2027, supporting volume ramp of hard drives utilizing HAMR technology, we expect capital expenditures to be higher than…
assetspositiveprobableFor fiscal year 2027, supporting volume ramp of hard drives utilizing HAMR technology, we expect capital expenditures to be higher than…